The FTSE 100 rose sharply today, Thursday 21st January 2010, following promising economic news from China.
By 8.22am, the FTSE had climbed almost 43 points, or 0.78%, to 5,462.42.
China is poised to overtake Japan as the world’s second largest economy after posting 10.7% growth in Q4.
A statistics bureau report showed the nation’s GDP surged in the final quarter of last year and says China’s economy grew 8.7% in 2009 as a whole – to $4.9trn.
Miners were among the early winners on the FTSE, reversing at least some of the losses felt yesterday. Lonmin rose 38p, or 2%, to £19.18, while Antofagasta advanced 17.5p, or 1.79%, to 994.5p.
Yesterday, miners constituted the top 10 fallers on the FTSE amid concerns surrounding Chinese efforts to curb lending, potentially leading to a drop in metals demand.
United Utilities, the UK’s largest listed water company, led the early gainers, rising 20p, or almost 4%, to 528.5p.
There were minimal losses for Morrison and Carnival while Standard Life, fined £2.45m by the FSA yesterday for misleading investors over its Pension Sterling fund, slipped 0.19% to 205.6p
Asian markets were mixed but Japanese stocks rose for the first day this week, boosted by electrical manufacturers. The Nikkei 225 Stock Average advanced 1.2% to 10,868.41 at close, reversing an earlier 0.8% fall.
The Dow Jones industrial average fell 122 points, or 1.14%, Wednesday from a 15-month high but ended well off its lows for the day. The index closed at 10,603